Corporates neglect ports and shipping sector: Assocham

Owing to over regulation and procedural constraints, the Ports and Shipping sector is the most unattractive sector amongst  the corporates for Investments, says a study report  from The Associated Chambers of Commerce and Industry (Assocham).

Of the total Investments of Rs 6,33,906 from the corporates in the first half of 2008, the ports and Shipping sector could garner only Rs 30,690,that is  less than 3 per cent of the total investments, according to the Assocham study.

The companies that  invested  in the sector were  Essar Shipping Ports, Jindal Saw, Shipping Corporation of India and JSW Infrastructure among others.
Assocham has given 10th ranking to the sector in its study ‘India Inc Investing: a mid year report 2008.

Releasing the Study, Assocham President, Sajjan Jindal said that another laggard sector was construction and manufacturing which could garner only Rs.36,790 crore of investments for a period of January-June 2008 from various corporates.

In percentage terms, the share is only 3.50% and it has happened because of higher input costs, higher cost of borrowings, construction and manufacturing are not deemed to be that prolific sector from investment point of view.